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🇬🇧 UK Employment Law · 2026/27 Updates · Free

Notice Pay & PILON Calculator 2026

Calculate exactly how much statutory notice pay you are legally owed, and see how much tax will be deducted from your PILON.

✓Statutory vs Contractual✓PILON Tax Estimator✓Up to 12 Weeks✓Free — no sign-up

Employment Details

If you are paid monthly, multiply your monthly gross by 12, then divide by 52.

Check your employment contract. Enter 0 if you don't know or don't have one.

Gross Notice Pay Owed

£0.00

How your entitlement is calculated:

Full Years of Service:0 year(s)
UK Statutory Notice:0 week(s)
Your Contractual Notice:0 week(s)
Applicable Notice Period:0 week(s)

(The law entitles you to whichever is higher)

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How Much Statutory Notice Pay Am I Entitled To?

Under UK employment law, you are legally entitled to a minimum amount of notice if your employer dismisses you or makes you redundant. This is called "statutory notice". It is calculated strictly based on your continuous length of service:

  • Less than 1 month: No statutory notice.
  • 1 month to 2 years: 1 week of notice.
  • 2 years to 12 years: 1 week of notice for every full year you have worked.
  • More than 12 years: Capped at a maximum of 12 weeks of notice.

Contractual Notice vs Statutory Notice — Which Applies?

Your employment contract will almost certainly state a notice period. You are legally entitled to whichever figure is higher. For example, if your contract says you get 4 weeks of notice, but you have worked there for 6 years (giving you a statutory right to 6 weeks), your employer must give you 6 weeks. Statutory rights always override contracts if the statutory amount benefits the employee more. If you believe your employer is breaching this, you should check your Employment Tribunal Deadline.

What Is PILON (Payment in Lieu of Notice)?

If your employer dismisses you, they might not want you to stick around the office for the next 4 to 12 weeks. Instead, they can opt to dismiss you immediately and simply pay you the money you would have earned during that notice period. This is called PILON (Payment in Lieu of Notice). It allows for an immediate, clean break. You should calculate this separately from any Statutory Redundancy Pay you are owed, as they are two different payments.

Gardening Leave vs Working Your Notice

An alternative to PILON is "Gardening Leave". If you are put on gardening leave, you remain employed and are paid your normal salary on your normal payday, but you are told not to come to work, log into systems, or contact clients. Because you are still employed, you continue to accrue holiday pay, and your exact take-home pay remains unchanged during this period.

Is Notice Pay Taxable? The PENP Formula Explained

Yes. Before April 2018, there was a loophole where PILON payments could sometimes be paid completely tax-free if the employer breached the contract. The government closed this loophole by introducing the PENP (Post-Employment Notice Pay) rules. Under PENP, all notice pay—whether worked, paid as PILON, or paid as damages—is treated exactly like normal wages. It is fully subject to Income Tax and National Insurance. Do not expect to receive your notice pay tax-free.

Notice Pay Rules

Frequently asked questions

How much statutory notice pay am I entitled to?
Under UK law, if you have worked for an employer for at least one month but less than two years, you are entitled to 1 week of notice. After two years, you are entitled to 1 week for every full year worked, up to a maximum of 12 weeks.
What is PILON (Payment in Lieu of Notice)?
PILON stands for Payment In Lieu Of Notice. If your employer wants you to leave immediately and not work your notice period, they can pay you the money you would have earned during that time instead. This requires a PILON clause in your contract.
Is notice pay taxable in 2026?
Yes. In the past, PILON was sometimes paid tax-free if it wasn't in your contract. However, since the introduction of the PENP (Post-Employment Notice Pay) rules in 2018, all notice pay is treated as regular earnings and is fully subject to Income Tax and National Insurance.
What if my contract notice period is longer than statutory?
You are legally entitled to whichever is higher. If your contract says you get 4 weeks notice, but you have worked there for 6 years (giving you a statutory right to 6 weeks), your employer MUST give you 6 weeks. Statutory rights override contracts if the statutory amount is higher.
Can my employer give me money instead of letting me work my notice?
Yes, this is known as PILON (Payment in Lieu of Notice) and is very common. However, they can usually only do this if there is a specific clause in your employment contract allowing them to do so.
How is notice pay calculated if I earn variable pay?
If your pay varies (for example, if you do shift work or have variable hours), your notice pay is usually calculated by taking an average of your earnings over the 12 weeks immediately prior to your notice period starting.
Does gardening leave count as working my notice?
Yes. If you are put on 'gardening leave', you are still technically employed and must be paid your normal salary and benefits, but you are instructed not to attend work or contact clients. This time counts as your notice period.
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